Account
This query is : Resolved
26 March 2017
Realisation of cash from debtors will not affect working capital.
Is it true or false.
Plz explain how
Is it true or false.
Plz explain how
CA Gopal Somani
(Expert)
26 March 2017
Yes, It will not impact. Because there is no change in Current assets.
Debtor decreases and with the same amount cash will increase. So no change in Current Assets and in turn no change in Working capital.
Debtor decreases and with the same amount cash will increase. So no change in Current Assets and in turn no change in Working capital.
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